Which of the following is included in product cost for pricing and product-mix decisions?
A) design costs
B) sunk costs
C) opportunity costs
D) cost of capital

Question

Quizplus · Accepted Answer

Design costs are included in product cost as they are direct expenses incurred specifically for the production of the product. Sunk costs, opportunity costs, and cost of capital are not included in product cost for pricing and product-mix decisions. Sunk costs are past expenses that cannot be recovered and should not be considered in decision-making. Opportunity costs refer to the benefits given up by choosing one option over another, and cost of capital is a financial concept that determines the cost of the funds used to finance a business or investment.

Which of the Following Is Included in Product Cost for Pricing